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WSJ: Shadow looms over GE Capital

After a difficult year marred by a slumping share price and promises to jettison major units, General Electric (NYSE:GE) investors face another uncertainty: risks left over from the industrial giant’s once-massive lending business, WSJ reports.

“It is not fully known what residual risks GE retained when it dismantled GE Capital.” said Martin Sankey, a senior research analyst at Neuberger Berman. “The question becomes, does GE Capital have any value at all.”

In addition to legacy insurance policies, it has exposure to subprime U.S. mortgages and unusual financial products, including $3.1B in floating-rate Polish residential mortgages that are mostly denominated in Swiss francs.

Update: GE shares are now trading below $13, their lowest level since July 2009.